New Covenant Case Study: Aradippou explores innovative financing solutions in energy efficiency

In order to encourage investments by citizens in energy efficiency and photovoltaic solar panels, Covenant signatory Aradippou has created an innovative strategy based on the combination of private and public funds to develop incentives.

Located on the outskirts of Larnaca, Aradippou stand as the second largest city in terms of area in Cyprus. Cyprus is still recovering from the latest financial crisis which seriously affected salaries, employment, and the construction industry as a whole. The economic situation has deeply impacted Cypriots, who are thus reluctant to invest in retrofitting buildings with insulation an energy efficient measures. Consequently, the city of Aradippou took the initiative to conduct a partnership approach in order to create incentives for the retrofit of private housing. The municipality has launched a couple of innovative actions to support its inhabitants investing in energy efficiency.

Soft loans for photovoltaic

In cooperation with the Cooperative Central Bank and the Larnaka Chamber of Commerce and Industry, Aradippou has prepared a pilot programme aiming to provide loans with more favourable terms for the installation of photovoltaic systems on homes. This pilot programme has secured €1 million for soft loans for photovoltaics on 100 homes.

Combining municipal grant with bank loan for energy efficiency actions

Through the Horizon 2020 INNOVATE project, Aradippou has developed an innovative financing scheme in order to encourage larger investments by owners. The municipality has extended its previous strategy by creating an innovative financial tool which blends a municipal grant with a bank loan.

One-stop-shop for energy renovations

In a dedicated space inside the city hall, inhabitants have the opportunity to find any information related to clean energy including rewards for citizens by the municipality for energy saved and clean energy produced.

Find more about Aradippou's action in the new Covenant Case Study!